• University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
    University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
  • University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
    University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
  • University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
    University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
  • University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
    University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
  • University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
    University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
  • University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
    University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
  • University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
    University students in Sri Lanka's capital Colombo attend a protest calling for the resignation of President Gotabaya Rajapaksa over his alleged failure to address the economic crisis in the country. Protests have been rocking the country for more than two months as Sri Lanka faces its worst-ever economic crisis due to the lack of foreign reserves, resulting in severe shortages in food, fuel, medicine, and imported goods. EPA
  • Members of the Inter University Students' Federation demand for Sri Lanka's President Gotabaya Rajapaksa to resign, amid the country's economic crisis, in Colombo. Reuters
    Members of the Inter University Students' Federation demand for Sri Lanka's President Gotabaya Rajapaksa to resign, amid the country's economic crisis, in Colombo. Reuters

World

Sri Lankan students demand government resign over economic crisis

Sri Lanka is nearly bankrupt and has suspended repayment of $7 billion in foreign debt due this year

The National

June 20, 2022

  • English
  • Arabic

Thousands of students from state universities marched in Sri Lanka’s capital on Monday to demand the president and prime minister resign over an economic crisis that has caused severe shortages of essential supplies and disrupted people’s livelihoods and education.

The students say President Gotabaya Rajapaksa is responsible for the economic crisis, the worst since independence in 1948. They also claim that Prime Minister Ranil Wickremesinghe, who took over the position a little more than a month ago promising to end shortages, has not delivered on his pledges.

Sri Lanka is nearly bankrupt and has suspended repayment of $7 billion in foreign debt due this year. It must also pay back more than $5bn every year until 2026.

The country's foreign reserves are nearly gone and it is unable to import food, fuel, cooking gas and medicines. A lack of fuel to run power stations has resulted in long daily power cuts.

In recent months, people have been forced to stand in long lines to buy fuel and gas. This has meant the country has survived mostly on credit lines extended by neighbouring India to buy fuel and other essentials.

With that credit also running out, authorities have shut schools and instructed teachers to teach online. They have also asked non-essential government employees to work from home for one week to preserve limited stocks of fuel.

Officials from the International Monetary Fund are currently in Sri Lanka to discuss a bailout package.

Months-long protests have nearly dismantled the Rajapaksa political dynasty that has ruled Sri Lanka for most of the past two decades.

One of the Rajapaksa brothers, Mahinda, resigned as prime minister last month, and two other brothers and a nephew quit their Cabinet posts earlier.

President Rajapaksa has admitted he did not take steps to forestall the economic collapse early enough, but has refused to leave office. It is nearly impossible to oust a president under the constitution unless he resigns of his own accord.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
  • Drones
  • Animals
  • Fireworks/ flares
  • Radios or power banks
  • Laser pointers
  • Glass
  • Selfie sticks/ umbrellas
  • Sharp objects
  • Political flags or banners
  • Bikes, skateboards or scooters
Updated: June 20, 2022, 4:42 PM
AsiaSri Lanka